CMC Markets today released a trading update, revealing that the company expects the net revenue income for the financial year 2022, which ended on 31 March, to reach £280 million.
The broker is expecting its annual gross leveraged client income at £288 million, 14% lower than the financial year 2021.
The leveraged trading business, it is expected to report 34% decrease in revenue to around £230 million. The revenue from non-leveraged is expected to be £48 million, which is 12% less than the previous year.
Additionally, the London-based company highlighted that the fourth quarter was its best performing quarter for the financial year 2022. CMC Markets it is expecting its operating costs to reach £173 million, higher than the previous year’s £168 million. The company also noted that the increase in the figure reflects higher personnel costs to deliver strategic objectives.
I am delighted to report another year of strong performance both strategically and financially. Outside of the pandemic year (Financial year ending March 2021), this is a record net operating income result for the company. The performance reflects the ongoing success of our B2B technology partnerships and focus across our leveraged and non-leveraged businesses.
Share buyback program
Earlier in March, CMC Markets began a major share buyback program, allocating £30 million. The company has already started the re-purchase with an aim to reduce its share capital.
Lord Cruddas said:
This business continues to change as we look to utilize our technology to enter new markets and expand our non-leveraged offering. I look forward to updating investors as the strategy expands over both the short and long-term.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.